Testing Underway at Ausable#5, Canada

RNS Number : 6118I

Solo Oil Plc

17 June 2011

 



For Immediate Release

17 June 2011

SOLO OIL PLC

("Solo" or the "Company")

Testing Underway at Ausable#5, Canada

Solo Oil plc, the AIM listed International Oil and Gas Exploration and Development Company, today announces the commencement of testing at the Ausable#5 well in South Western Ontario by its Joint Venture partner Reef Resources Limited ("Reef").

Reef's announcement; to the Toronto exchange, reads:

June 16, 2011 - Calgary, Alberta - Reef Resources Ltd. (REE - TSX.V) ("Reef" or the "Company") announces the contracted service rig is now on the Ausable # 5 well in preparation for the testing and completion.  The completion program comprises drilling out cement and a bridge plug in the production casing, swab testing of the lower Goat Island zone and completion of the Guelph formation using a multi-stage selective acid treatment.  After acidization the well will be flow tested over a period of several days to ensure clean up. These operations are expected to take between 15 to 25 days to complete.

Reef previously announced the log analysis on the Ausable # 5 well, with log analysis indicating 72 metres net pay of oil and NGL's in the Guelph and A2 formations.

Reef will be announcing test results after completion of Ausable #5 and the details of the next development steps in the Enhanced Oil Recovery - Natural Gas Liquids program in due course. The Ausable reef is currently on production and is generating revenue from the initial program which commenced in 4th quarter 2010.

Executive Director of Solo, Neil Ritson commented; "We are delighted that the programme is now underway and we look forward to the results of this important testing in the next few weeks."

As previously announced on the 24 May 2011 Solo is in the process of converting its participating loan and providing additional funding to acquire a 38.1% working interest in the Reef Ontario properties including the Ausable#5 well.

Competent Person's Statement:

The information contained in this announcement has been reviewed and approved by Neil Ritson, Chief Executive Officer and Director for Solo Oil Plc who has 35 years of relevant experience in the oil industry.  Mr. Ritson is a member of the Society of Petroleum Engineers, an Active Member of the American Association of Petroleum Geologists and is a Fellow of the Geological Society of London.

For further information:

Solo Oil plc David Lenigas Neil Ritson	[phone]
Beaumont Cornish Limited Nominated Adviser and Joint Broker Roland Cornish	[phone]
Shore Capital Joint Broker Pascal Keane Jerry Keen Pelham Bell Pottinger Financial Public Relations Mark Antelme Henry Lerwill	[phone] [phone]

Glossary:

acidization              -    the use of acid, typically HCl, to stimulate the well by dissolving part of the

carbonate matrix of the reservoir rock to improve production

EOR                      -    Enhanced Oil Recovery         

swab testing           -    the use of a wireline fitted with a cup and valve to draw fluid from the well

 

END

 

 

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